Saudi Arabia Could Become Majority Owner of Heathrow Airport

Speculation suggests that Saudi Arabia's Public Investment Fund and French private equity firm Ardian are ready to buy a majority stake in Heathrow Airport.

Business

The Kingdom could become the majority owner of Heathrow Airport.

Saudi Arabia could potentially take control of Heathrow Airport as fellow investors in the hub are reportedly ready to sell their stakes, according to a recent report. The country’s sovereign wealth fund, the Public Investment Fund (PIF), and French private equity firm Ardian have already agreed to purchase a 25% stake in the airport for £2.4 billion from Ferrovial. PIF will acquire 10% while Ardian will acquire 15%. The stakes will be held separately, although PIF is also an investor in Ardian.

Additional shareholders are said to be considering selling their stakes as well, with concerns rising about the increasing influence of Middle East investors over key UK assets. While major stakeholders such as Chinese, Qatari, and Singapore funds may choose to hold on, other investors are expected to sell. If the deal goes through, PIF and Ardian would have nearly 60% control of Heathrow Airport.

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